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Kelley Hall
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NIKE, INC. REPORTS FISCAL 2015 FOURTH QUARTER

AND FULL YEAR RESULTS
Fourth quarter revenues up 5 percent to $7.8 billion; 13 percent growth excluding currency
changes
Fourth quarter diluted earnings per share up 26 percent to $0.98
Fiscal 2015 revenues up 10 percent to $30.6 billion; 14 percent growth excluding currency
changes
Fiscal 2015 diluted earnings per share up 25 percent to $3.70
Worldwide futures orders up 2 percent; 13 percent growth excluding currency changes
Inventories as of May 31, 2015 up 10 percent
BEAVERTON, Ore., June 25, 2015 NIKE, Inc. (NYSE:NKE) today reported fiscal 2015 financial
results for its fourth quarter and full year ended May 31, 2015. Diluted earnings per share for the
quarter increased 26 percent as broad-based revenue growth, gross margin expansion and a lower
tax rate more than offset increased SG&A investments.
Fiscal 2015 diluted earnings per share rose 25 percent to $3.70, reflecting 10 percent revenue growth,
gross margin expansion, a lower tax rate and a lower average share count, which more than offset the
impacts of higher SG&A investments.
"Fiscal 2015 was an outstanding year for NIKE, said Mark Parker, President and CEO, NIKE, Inc.
Our consistent growth is fueled by our connection to the consumer and our ability to deliver
innovation at an unprecedented pace and scale. At no time in our history has the growth potential
been greater for NIKE.*
Fourth Quarter Income Statement Review

Revenues for NIKE, Inc. rose 5 percent to $7.8 billion, up 13 percent on a currency-neutral
basis.
o Revenues for the NIKE Brand were $7.4 billion, up 13 percent on a currency-neutral basis
driven by growth in nearly every geography and key category except Emerging Markets and
Global Football.
o Revenues for Converse were $435 million, up 14 percent on a currency-neutral basis, mainly
driven by market transitions to direct distribution in AGS (Austria, Germany and Switzerland)
and strong performance in the United States.
Gross margin expanded 60 basis points to 46.2 percent. The increase was primarily attributable
to higher average selling prices and continued growth in the higher margin Direct to Consumer
(DTC) business, partially offset by higher product input and logistics costs.
Selling and administrative expense increased 6 percent to $2.6 billion. Demand creation
expense was $819 million, down 7 percent, reflecting higher investment in support of the World
Cup in the fourth quarter of fiscal 2014. Operating overhead expense increased 13 percent to
$1.8 billion, reflecting continued growth in the DTC business and targeted investments in
infrastructure and consumer-focused digital capabilities.

Other income, net was $58 million, comprised primarily of net foreign currency exchange gains.
For the quarter, the Company estimates the year-over-year change in foreign currency-related
gains and losses included in other income, net, combined with the impact of changes in
exchange rates on the translation of foreign currency-denominated profits, decreased pretax
income by approximately $37 million.
The effective tax rate was 17.8 percent, compared to 23.5 percent for the same period last
year, primarily due to adjustments to reduce tax expense recognized in interim quarters of fiscal
2015 on intercompany transactions.
Net income increased 24 percent to $865 million while diluted earnings per share increased
26 percent to $0.98, reflecting strong revenue growth and gross margin expansion, a lower tax
rate and a decrease in the weighted average diluted common shares outstanding.

Fiscal 2015 Income Statement Review

Revenues for NIKE, Inc. rose 10 percent to $30.6 billion, up 14 percent on a currency-neutral
basis.
o Revenues for the NIKE Brand were $28.7 billion, up 14 percent excluding the impact of
changes in foreign currency.
o NIKE Brand sales to wholesale customers increased 10 percent on a currency-neutral basis
while DTC revenues grew to $6.6 billion, up 29 percent excluding the impact of changes in
foreign currency, driven by 16 percent growth in comparable store sales, a 59 percent
increase in online sales and the addition of new stores. As of May 31, 2015, the NIKE Brand
had 832 DTC stores in operation as compared to 768 a year ago.
o On a currency neutral basis, NIKE Brand revenue growth was driven by growth in every
geography, every key category except Global Football and across the Womens, Mens and
Young Athletes businesses.
o Revenues for Converse were $2.0 billion, up 21 percent on a currency neutral basis, mainly
driven by market transitions to direct distribution in AGS and strong performance in the
United States.
Gross margin expanded 120 basis points to 46.0 percent. The increase was primarily due to
higher average selling prices and continued growth in the higher margin DTC business, partially
offset by higher product input and logistics costs.
Selling and administrative expense grew 13 percent to $9.9 billion. Demand creation expense
was $3.2 billion, up 6 percent, due to an increase in investments in support of key events and
product launches, as well as investments in DTC and sports marketing. Operating overhead
expense increased 16 percent to $6.7 billion due to the expanding DTC business, higher costs
for operational infrastructure and investments in consumer-facing digital capabilities.
Other income, net was $58 million for the fiscal year, mainly comprised of net foreign currency
exchange gains. For the year, the Company estimates the year-over-year change in foreign
currency-related gains and losses included in other income, net, combined with the impact of
changes in currency exchange rates on the translation of foreign currency-denominated profits,
decreased pretax income by approximately $73 million.
The effective tax rate was 22.2 percent, compared to 24.0 percent for the same period last
year, primarily due to the favorable resolution of tax audits across multiple jurisdictions.
Net income increased 22 percent to $3.3 billion reflecting strong revenue growth, gross margin
expansion and a lower tax rate. Diluted earnings per share increased 25 percent to $3.70,
reflecting the growth in net income and the additional benefit of a decline in the weighted
average diluted common shares outstanding.

May 31, 2015 Balance Sheet Review

Inventories for NIKE, Inc. were $4.3 billion, up 10 percent from May 31, 2014, driven primarily
by a 13 percent increase in NIKE Brand wholesale unit inventories. Changes in the average
product cost per unit were more than offset by changes in foreign currency exchange rates,
which together decreased NIKE, Inc. inventory growth by approximately 3 percentage points.
Cash and short-term investments were $5.9 billion, $782 million higher than last year as growth in
net income and collateral received from counterparties as a result of hedging activities more than
offset share repurchases, higher dividends and investments in working capital.

Share Repurchases
During the fourth quarter, NIKE, Inc. repurchased a total of 6.8 million shares for approximately $678
million as part of the four-year, $8.0 billion program approved by the Board of Directors in
September 2012. As of the end of fiscal 2015, a total of 80.9 million shares had been repurchased
under this program for approximately $6.0 billion, at an average cost of $73.55 per share.
Futures Orders
As of the end of the quarter, worldwide futures orders for NIKE Brand athletic footwear and apparel
scheduled for delivery from June through November 2015 totaled $13.5 billion, 2 percent higher than
orders reported for the same period last year, and 13 percent higher on a currency neutral basis.*
Conference Call
NIKE, Inc. management will host a conference call beginning at approximately 2:00 p.m. PT on June
25, 2015, to review fiscal fourth quarter and full year results. The conference call will be broadcast
live over the Internet and can be accessed at http://investors.nike.com. For those unable to listen to
the live broadcast, an archived version will be available at the same location through 9:00 p.m. PT,
July 2, 2015.
About NIKE, Inc.
NIKE, Inc., based near Beaverton, Oregon, is the world's leading designer, marketer and distributor
of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and
fitness activities. Wholly-owned NIKE, Inc. subsidiary brands include Converse, which designs,
markets and distributes athletic lifestyle footwear, apparel and accessories, and Hurley, which
designs, markets and distributes surf and youth lifestyle footwear, apparel and accessories. For
more information, NIKE, Inc.s earnings releases and other financial information are available on the
Internet at http://investors.nike.com and individuals can follow @Nike.
*

The marked paragraphs contain forward-looking statements that involve risks and uncertainties that could cause actual results to
differ materially. These risks and uncertainties are detailed from time to time in reports filed by NIKE with the S.E.C., including Forms
8-K, 10-Q, and 10-K. Some forward-looking statements in this release concern changes in futures orders that are not necessarily
indicative of changes in total revenues for subsequent periods due to the mix of futures and at once orders, exchange rate
fluctuations, order cancellations, discounts and returns, which may vary significantly from quarter to quarter, and because a portion of
the business does not report futures orders.

(Tables Follow)

NIKE, Inc.
CONSOLIDATED STATEMENTS OF INCOME

(Dollars in millions, except per share data)

Revenues
Cost of sales
Gross profit
Gross margin

THREE MONTHS ENDED

%
5/31/2015
5/31/2014
Change
$
7,779 $
7,425
5%
4,186
4,040
4%
3,593
3,385
6%
46.2%
45.6%

TWELVE MONTHS ENDED

%
5/31/2015
5/31/2014
Change
$
30,601 $
27,799
10%
16,534
15,353
8%
14,067
12,446
13%
46.0%
44.8%

Demand creation expense

Operating overhead expense
Total selling and administrative expense
% of revenue

819
1,776
2,595
33.4%

876
1,572
2,448
33.0%

-7%
13%
6%

3,213
6,679
9,892
32.3%

3,031
5,735
8,766
31.5%

6%
16%
13%

Interest expense (income), net

Other (income) expense, net
Income before income taxes
Income taxes
Effective tax rate

4
(58)
1,052
187
17.8%

8
17
912
214
23.5%

15%
-13%

28
(58)
4,205
932
22.2%

33
103
3,544
851
24.0%

19%
10%

NET INCOME

865

698

24%

3,273

2,693

22%

Earnings per common share:

Basic
Diluted

$
$

1.01
0.98

$
$

0.80
0.78

26%
26%

$
$

3.80
3.70

$
$

3.05
2.97

25%
25%

Weighted average common shares outstanding:

Basic
Diluted
Dividends declared per common share

857.5
879.8
$

0.28

873.7
895.2
$

0.24

861.7
884.4
$

1.08

883.4
905.8
$

0.93

NIKE, Inc.
CONSOLIDATED BALANCE SHEETS

(Dollars in millions)
ASSETS
Current assets:
Cash and equivalents
Short-term investments
Accounts receivable, net
Inventories
Deferred income taxes
Prepaid expenses and other current assets
Total current assets
Property, plant and equipment
Less accumulated depreciation
Property, plant and equipment, net
Identifiable intangible assets, net
Goodwill
Deferred income taxes and other assets
TOTAL ASSETS
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt
Notes payable
Accounts payable
Accrued liabilities
Income taxes payable
Total current liabilities
Long-term debt
Deferred income taxes and other liabilities
Redeemable preferred stock
Shareholders' equity
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

May 31,

May 31,

2015

2014

3,852
2,072
3,358
4,337
389
1,968
15,976
6,395
3,384
3,011
281
131
2,201
21,600

107
74
2,131
3,951
71
6,334
1,079
1,480
12,707
21,600

% Change

2,220
2,922
3,434
3,947
355
818
13,696
6,220
3,386
2,834
282
131
1,651
18,594

74%
-29%
-2%
10%
10%
141%
17%
3%
0%
6%
0%
0%
33%
16%

7
167
1,930
2,491
432
5,027
1,199
1,544
10,824
18,594

1429%
-56%
10%
59%
-84%
26%
-10%
-4%
17%
16%

NIKE, Inc.
DIVISIONAL REVENUES

(Dollars in millions)
North America
Footwear
Apparel
Equipment
Total
Western Europe
Footwear
Apparel
Equipment
Total
Central & Eastern Europe
Footwear
Apparel
Equipment
Total
Greater China
Footwear
Apparel
Equipment
Total
Japan
Footwear
Apparel
Equipment
Total
Emerging Markets
Footwear
Apparel
Equipment
Total
Global Brand Divisions2
Total NIKE Brand
Converse
Corporate3
Total NIKE, Inc. Revenues

THREE MONTHS ENDED

5/31/2015
5/31/2014
$

2,317
1,187
228
3,732

%
Change

% Change
Excluding
Currency TWELVE MONTHS ENDED
Changes1 5/31/2015
5/31/2014

2,036
1,017
241
3,294

14%
17%
-5%
13%

14%
17%
-5%
14%

900
310
57
1,267

884
366
62
1,312

2%
-15%
-8%
-3%

23%
2%
9%
17%

237
101
22
360

219
129
22
370

8%
-22%
0%
-3%

551
245
33
829

434
235
33
702

145
63
22
230
631
249
54
934
30
7,382
435
(38)
7,779 $

7,495
3,937
867
12,299

13%
12%
-5%
12%

14%
12%
-5%
12%

3,876
1,555
278
5,709

3,299
1,427
253
4,979

17%
9%
10%
15%

25%
14%
15%
21%

33%
-3%
20%
20%

827
495
95
1,417

763
532
92
1,387

8%
-7%
3%
2%

22%
5%
14%
15%

27%
4%
0%
18%

29%
6%
0%
20%

2,016
925
126
3,067

1,600
876
126
2,602

26%
6%
0%
18%

28%
7%
1%
19%

128
75
23
226

13%
-16%
-4%
2%

33%
-1%
7%
19%

452
230
73
755

409
276
86
771

11%
-17%
-15%
-2%

23%
-8%
-6%
9%

701
313
66
1,080
36
7,020
410
(5)
7,425

-10%
-20%
-18%
-14%
-17%
5%
6%
5%

1%
-12%
-7%
-3%
4%
13%
14%
13%

2,641
1,021
236
3,898
115
28,701
1,982
(82)
30,601 $

2,642
1,061
246
3,949
125
26,112
1,684
3
27,799

0%
-4%
-4%
-1%
-8%
10%
18%
10%

9%
5%
5%
8%
-2%
14%
21%
14%

8,506
4,410
824
13,740

%
Change

% Change
Excluding
Currency
Changes1

Total NIKE Brand

Footwear
$
4,781 $
4,402
9%
17%
$
18,318 $
16,208
13%
17%
Apparel
2,155
2,135
1%
7%
8,636
8,109
6%
10%
Equipment
416
447
-7%
-2%
1,632
1,670
-2%
1%
Global Brand Divisions 2
30
36
-17%
4%
115
125
-8%
-2%
1
Fiscal 2015 results have been restated using fiscal 2014 exchange rates for the comparative period to enhance the visibility of the underlying
business trends excluding the impact of translation arising from foreign currency exchange rate fluctuations.
2

Global Brand Divisions revenues are primarily attributable to NIKE Brand licensing businesses that are not part of a geographic operating
segment.
3

Corporate revenues primarily consist of foreign currency revenue-related hedge gains and losses generated by entities within the NIKE Brand
geographic operating segments and Converse through our centrally managed foreign exchange risk management program.

NIKE, Inc.
SUPPLEMENTAL NIKE BRAND REVENUE DETAILS

YEAR ENDED
(Dollars in millions)
NIKE Brand Revenues by:
Sales to Wholesale Customers
Sales Direct to Consumer
Global Brand Divisions 3
Total NIKE Brand Revenues

5/31/2015
$

21,952
6,634
115
28,701

21,952
3,881
25,833

14,694

5/31/2014

Change

% Change
Excluding
Currency
Changes2

20,683
5,304
125
26,112

6%
25%
-8%
10%

10%
29%
-2%
14%

20,683
3,107
23,790

6%
25%
9%

10%
29%
13%

NIKE Brand Revenues on a Wholesale Equivalent Basis: 4

Sales to Wholesale Customers
Sales from our Wholesale Operations to Direct to Consumer Operations
Total NIKE Brand Wholesale Equivalent Revenues

NIKE Brand Wholesale Equivalent Revenues by: 4

Men's

14,001

5%

9%

Womens

5,724

4,971

15%

20%

Young Athletes'
Others 5

4,301

3,737

15%

19%

1,114

1,081

3%

7%

9%

13%

Total NIKE Brand Wholesale Equivalent Revenues

25,833

23,790

4,853

NIKE Brand Wholesale Equivalent Revenues by: 4

Running

4,623

5%

9%

Basketball

3,715

3,119

19%

21%

Football (Soccer)

2,246

2,413

-7%

-2%

Mens Training

2,537

2,483

2%

4%

Womens Training

1,279

1,145

12%

16%

Action Sports

736

738

0%

4%

Sportswear

6,596

5,742

15%

20%

Golf
Others 6

771

789

-2%

0%

3,100

2,738

13%

17%

Total NIKE Brand Wholesale Equivalent Revenues

$
25,833 $
23,790
9%
13%
1
Certain prior year amounts have been reclassified to conform to fiscal 2015 presentation. These changes had no impact on previously
reported results of operations or shareholders' equity.
2

Fiscal 2015 results have been restated using fiscal 2014 exchange rates for the comparative period to enhance the visibility of the underlying
business trends excluding the impact of translation arising from foreign currency exchange rate fluctuations.
3

Global Brand Divisions revenues are primarily attributable to NIKE Brand licensing businesses that are not part of a geographic operating
segment.
4

References to NIKE Brand wholesale equivalent revenues are intended to provide context as to the total size of our NIKE Brand market
footprint if we had no Direct to Consumer operations. NIKE Brand wholesale equivalent revenues consist of 1) sales to external wholesale
customers, and 2) internal sales from our wholesale operations to our Direct to Consumer operations which are charged at prices that are
comparable to prices charged to external wholesale customers.
5

Others include all unisex products, equipment and other products not allocated to Men's, Women's and Young Athletes', as well as certain
adjustments that are not allocated to products designated by gender or age.
6

Others include all other categories and certain adjustments that are not allocated at the category level.

NIKE, Inc.
EARNINGS BEFORE INTEREST AND TAXES

1,2

THREE MONTHS ENDED

%
TWELVE MONTHS ENDED
%
(Dollars in millions)
5/31/2015
5/31/2014
Change
5/31/2015
5/31/2014
Change
North America
$
1,060 $
888
19% $
3,645 $
3,077
18%
Western Europe
277
192
44%
1,277
855
49%
Central & Eastern Europe
71
71
0%
247
279
-11%
Greater China
266
215
24%
993
816
22%
Japan
38
39
-3%
100
131
-24%
Emerging Markets
192
271
-29%
818
952
-14%
(626)
(549)
(2,263)
(1,993)
Global Brand Divisions 3
-14%
-14%
TOTAL NIKE BRAND
1,278
1,127
13%
4,817
4,117
17%
Converse
80
94
-15%
517
496
4%
(302)
(301)
(1,101)
(1,036)
Corporate4
0%
-6%
TOTAL EARNINGS BEFORE INTEREST AND TAXES
$
1,056 $
920
15% $
4,233 $
3,577
18%
1
The Company evaluates performance of individual operating segments based on earnings before interest and taxes (commonly referred to as
EBIT), which represents net income before interest expense (income), net and income taxes.
2

Certain prior year amounts have been reclassified to conform to fiscal 2015 presentation. These changes had no impact on previously
reported results of operations or shareholders' equity.
3

Global Brand Divisions primarily represent demand creation, operating overhead, information technology and product creation and design
expenses that are centrally managed for the NIKE Brand. Revenues for Global Brand Divisions are primarily attributable to NIKE Brand
licensing businesses that are not part of a geographic operating segment.
4

Corporate consists of unallocated general and administrative expenses, which includes expenses associated with centrally managed
departments, depreciation and amortization related to the Companys corporate headquarters, unallocated insurance and benefit programs,
certain foreign currency gains and losses, including certain hedge gains and losses, corporate eliminations and other items.

NIKE, Inc.
1

NIKE BRAND REPORTED FUTURES GROWTH BY GEOGRAPHY

As of May 31, 2015
Reported Futures
Orders
13%

Excluding Currency
Changes2
13%

-11%

14%

Central & Eastern Europe

-9%

17%

Greater China

20%

22%

North America
Western Europe

Japan
Emerging Markets
Total NIKE Brand Reported Futures

1%

20%

-14%

2%

2%

13%

Futures orders for NIKE Brand footwear and apparel scheduled for delivery from June 2015 through November
2015. The U.S. Dollar futures orders amount is calculated based upon our internal forecast of the currency
exchange rates under which our revenues will be translated during this period.
The reported futures orders growth is not necessarily indicative of our expectation of revenue growth during this
period. This is due to year-over-year changes in shipment timing, changes in the mix of orders between futures
and at-once orders and because the fulfillment of certain orders may fall outside of the schedule noted above.
In addition, exchange rate fluctuations as well as differing levels of order cancellations, discounts and returns
can cause differences in the comparisons between futures orders and actual revenues. Moreover, a portion of
our revenue is not derived from futures orders, including at-once and closeout sales of NIKE Brand footwear and
apparel, sales of NIKE Brand equipment, sales from our DTC operations and sales from Converse, NIKE Golf
and Hurley.
2

Reported futures have been restated using prior year exchange rates to enhance the visibility of the
underlying business trends excluding the impact of foreign currency exchange rate fluctuations.